EUR/USD started a fresh increase above the 1.1820 and 1.1850 resistance levels. EUR/JPY is correcting gains, but it is likely to restart its rise above 130.50.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro formed a base above 1.1720 and started a fresh increase above 1.1800.
- There was a break above a couple of bullish continuation patterns near 1.1765 and 1.1820 on the hourly chart of EUR/USD.
- EUR/JPY is also trading in a positive zone above the 130.00 support.
- There is a major bullish trend line forming with support near 129.95 on the hourly chart.
EUR/USD Technical Analysis
After trading close to the 1.1700 level, the Euro started a fresh increase against the US Dollar. The EUR/USD pair broke the 1.1780 and 1.1800 resistance levels to move into a positive zone.
There was also a break above a couple of bullish continuation patterns near 1.1765 and 1.1820 on the hourly chart of EUR/USD. It opened the doors for more gains above the 1.1850 level and the 50 hourly simple moving average.
It traded as high as 1.1877 on FXOpen and it is now consolidating gains. An initial support is near the 1.1855 level. It is near the 23.6% Fib retracement level of the recent increase from the 1.1795 low to 1.1877 high.
Any more losses might call for a test of the 1.1840 support or the 50% Fib retracement level of the recent increase from the 1.1795 low to 1.1877 high. The next major support is near the 1.1800 level or the 50 hourly simple moving average.
On the upside, the pair is facing resistance near the 1.1880 level. The next major resistance is near the 1.1920 level. A clear break above 1.1920 might start a steady increase towards the 1.2000 resistance. The next major resistance above the 1.2000 level sits near the 1.2050 level.
EUR/JPY Technical Analysis
The Euro also followed a decent bullish path above the 128.50 resistance zone against the Japanese Yen. The EUR/JPY pair even traded above the 130.00 resistance level to move into a positive zone.
It spiked above the 130.50 level, but struggled to continue higher. The recent high was formed near 130.43 before the pair started a downside correction. There was a break below the 130.30 support zone.
The pair declined below the 23.6% Fib retracement level of the upward move from the 129.81 low to 130.43 swing high.
However, the pair is holding the key 130.15 support and the 50 hourly simple moving average. The 50% Fib retracement level of the upward move from the 129.81 low to 130.43 swing high is also near the 130.12 level.
Besides, there is a major bullish trend line forming with support near 129.95 on the hourly chart. If there is a downside break below the trend line support, the pair could dive towards the 129.50 support level in the near term.
On the upside, there is a key resistance forming near the 130.30 level. There is also a connecting bearish trend line near 130.30 on the same chart.
A clear break above the trend line resistance might call for more gains above the 130.50 level. If the bulls succeed above 130.30 and 130.50, the pair could rally towards 131.20. The next major stop for the bulls may possibly be near the 131.80 level.
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